advice wanted on getting mortgage with bad credit

keentobuy

hi

would value some advice. I've got a poor credit rating - I've got about £30k of debt and I'm currently using a debt management company (overall I'm paying £600 a month to repay debts).

My salary is £40k a year and I get about £5k bonus

I want to get a mortgage. Can anyone advise the best route to go to get advice? I'd be looking ideally at buying a £160k property and can get 5%deposit from savings and parents.

Thanks

L-Jay

My advice is simple - don't do it.

Seriously, a mortgage is still a debt, get your self straight first and then look again.

littlejen_3

Hey I am in a similar situation, I know other people who have used Northern Rock to get a 125% mortgage and rolled the debt into it, this makes the monthly payments only a little more than you are making now and you are investing in a house. This only works if you remortgage after a couple of years when the houes has increased in value enough so that you are no longer in negative equity. However this will depend on how bad your credit history is and if they will accept you.
I know everyone will give me a hard time for giving this advice but I know how much I want to get onto the property market and if you are paying rent anyway you may as well be making the payments to yourself.
I applied for the Northern Rock mortgage a few months ago but was turned down, they said to leave it for 6 months then I could try again. I am now doing everything to improve my credit history so that I can apply again.

Hope this helps

keentobuy

littlejen - thanks for the reply

if you don't mind me asking - is your credit rating poor? I just wondered what difference six months would make in reapplying.

L-Jay

Ultimately it's up to you, but think very carefully before turning unsecured debt into secured.

toonfish

littlejen wrote:

Hey I am in a similar situation, I know other people who have used Northern Rock to get a 125% mortgage and rolled the debt into it, this makes the monthly payments only a little more than you are making now and you are investing in a house. This only works if you remortgage after a couple of years when the houes has increased in value enough so that you are no longer in negative equity. However this will depend on how bad your credit history is and if they will accept you.
I know everyone will give me a hard time for giving this advice but I know how much I want to get onto the property market and if you are paying rent anyway you may as well be making the payments to yourself.
I applied for the Northern Rock mortgage a few months ago but was turned down, they said to leave it for 6 months then I could try again. I am now doing everything to improve my credit history so that I can apply again.

Hope this helps

that's all well and good, unless the house doesn't increase in value for 2 years. Generally it's not a good idea to consolidate debts on to your mortgage, or take 100%+ loans if in any way avoidable. I know it's the only way sometimes, but make sure you go into it with your eyes fully open.

keentobuy

thanks. I didn't really want to get more than a 100% mortgage and want to look at the cost/options before going ahead.

Does anyone know the best route to go down for getting advice? I'm not sure whether to approach my bank and don't know how to get a good IFA!